Read more about the QIP Fiasco here
Also sharing a few paragraphs directly from the link above.
Where Was The Lapse?
The SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, cited by Yes Bank in its exchange filing, require that a listed company must give the stock exchange prior intimation of at least 2 working days in the case of any board meeting called to decide on fund-raising matters.
Yes Bank’s filing on September 7 met this regulatory requirement of giving the stock exchange prior notice of at least 2 working days. BloombergQuint was not able to ascertain what ‘misinterpretation of new QIP guidelines’ Yes Bank was referring to.
It’s also not clear why on September 8, at 3.41pm Yes Bank informed the stock exchange that to be in compliance with regulations ‘the issue price of the QIP cannot be determined prior to the aforesaid meeting on September 12, 2016. Accordingly, the Bank is required to keep the issue open till September 09, 2016.’
Because on September 7, the Bank had itself disclosed, in its filing with the stock exchange, that the issue price would be determined on September 12.
Tejesh Chitlangi, partner at law firm IC Legal told BloombergQuint in an email communication that there was no legal or regulatory requirement for the QIP to be kept open till September 9. Referring to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 he said,
The Regulation 29(1) read with Regulation 29(2) only requires a clear notice of 2 working days (excluding the notice day and board meeting day) to be provided which was duly done by Yes Bank. There was no requirement for the issue to be kept opened till September 9, 2016 as was stated by Yes Bank in its today’s first BSE filing (at 3.41pm).
Tejesh Chitlangi, Partner, IC Legal
Chitlangi added that “no amendment has taken place in SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 as well as ICDR Regulations off late which could have given rise to any interpretation issue.”
A BloombergQuint query sent to Yes Bank seeking clarity on the specific regulation that required the QIP to stay open for three days was not answered.
A few investment bankers and lawyers BloombergQuint spoke to were unable to identify a regulation that could have forced the bank to defer the issue. They alluded to insufficient demand for the QIP as a possible reason for its deferment, but BloombergQuint was not able to confirm that with Yes Bank or any of the investment banks managing the QIP.
Yes Bank maintains that the QIP was fully subscribed by Thursday morning.